Budget 2023 Live Updates: FM sees FY23 growth at 7%

FM forecasts 7% growth in India this year. This is consistent with the preliminary estimates and what the Economic Survey also said.

The FM campaigned for a tech and knowledge-driven India in her 5th Budget speech.

According to reports, Nirmala Sitharaman's fifth budget would include sops for India's middle and lower middle classes, as she strikes a compromise between populism and pragmatism. Changes to the income tax structure are anticipated to be one of the major announcements.

FM Nirmala Sitaraman Fiscal Budget 2023-2024

Budget based on 7 priorities:

1. Green growth
2. Youth power
3. Inclusive development
4. Reaching the last mile
5. Infrastructure and investment
6. Unleashing the potential
7. Launch of digital platform

"Make in India" Push for Auto Industry and EVs

• Big push to 'Make In India'. LI battery, mobile, TV, chimney manufacturing get custom rebates.

• Custom duty exemptions to be provided for the manufacturing of lithium-ion batteries.

Note: Will EVs be cheaper than before?

Revamped credit guarantee scheme: Good news for MSMEs

According to the FM, the revamped credit guarantee plan for MSMEs would go into operation on April 1, 2023, with an infusion of Rs 9000 crore into the corpus.

This will allow for an extra collateral-free credit guarantee of Rs 2 lakh crore rupees, lowering the cost of lending by 1%. Good news for MSMEs still reeling from the effects of the epidemic.

Boost for Auto Sector

According to FM Sitharaman, replacing obsolete government cars will boost the economy.

It would result in bigger orderbooks for automakers, higher output, and job creation. This was last done on a large scale in India around 2008, following the collapse of Lehman Brothers.

FM's Green Growth Policy

The Budget prioritizes the adoption of green fuel, energy, and construction techniques to reduce carbon intensity and generate new green job opportunities as part of its 'green growth' policy.

The seven key principles, known as "Saptrishi," are intended to encourage sustainable and ecologically friendly economic development. The government's commitment to this 'green growth' strategy is a step toward a cleaner, more prosperous future for all Indians. This is a step toward India taking the lead in reducing the global climate issue.

PM Awaas Yojana Allocation Increased:

The 64 percent increase in PM Awaas Yojana grant to Rs 79,000 crore will benefit commercial vehicles and tractors used to transport building materials.

₹35,000 Cr for energy transition investment

• Have a 35,000 Cr investment in energy transformation.

• Over the next three years, we will assist one million farmers in adopting ecological farming.

• PM PRANAM will incentivize states and UTs to promote fertilizer balance.

• GOBARDAN: to encourage the circular economy. A total of 200 biogas plants would be built at a cost of 10,000 crores.

India is making strides toward the net zero aim. The recently created National Green Hydrogen Programme, which would cost Rs 19,700 crore, will help the country shift to a low-carbon economy and reduce reliance on fossil fuel imports.

Our goal is to attain 5 MMT of yearly output by 2030.

The Ministry of Petroleum and Natural Gas announced a Rs 35,000 crore capital investment in energy transition, net zero goal, and energy security in this budget.

Important Highlights so far:

• Increase capital spending by 33% to Rs 10 lakh crore, representing 3.3 percent of GDP.

• The 50-year, interest-free loan to states for capital expenditure has been enhanced to Rs 1.3 lakh crore, which is 30% more than the amount authorised for 2022-23.

• A new pharmaceutical research programme will be developed, and business will be encouraged to invest in research.

• The government plans to begin a Rs 2,200 crore Aatmanirbhar clean-up effort.

• Green growth would be one of the budget's focuses.

Big boost to Agri-Tech Startups

The government proposed digital public infrastructure for agriculture, which would enable inclusive farmer-centric services necessary for crop protection, providing a boost to the country's agritech firms.

Agritech businesses defied the 2022 financing slump by raising big sums from investors, but India has yet to produce its first agritech unicorn.

With the government constructing digital public infrastructure for agriculture, could agritech businesses receive more investment and develop quicker this year?

Agriculture highlighted by FM Sitaraman

So far, the budget address has focused on millets, artisans, Agri loans, micro enterprises, and small farmers.

The agriculture loan goal has been raised to Rs 20 lakh crore.

Decentralized storage capacity will be established to assist farmers in storing their product.

According to the budget, India would become a worldwide powerhouse for Sri Ann or Millets.